Stock Screen Using Price Range, MACD, and Opening Auction Gain

Summary

The proposed screen selects stocks with an amplitude above 1, MACD above the zero line, and a 9:25 a.m. price gain below 6% relative to the previous close. The document interprets larger amplitude as greater volatility, a positive MACD condition as favorable, and a limited pre-open gain as a way to avoid chasing a sharp opening move. Its formula examples use prior-close comparisons for amplitude and opening gain, while the MACD formula describes a zero-line crossover, which may not be equivalent to simply being above zero.

The post cautions that the opening-gain cap can exclude potential winners and that speculative activity can distort price movements. It recommends considering technical, fundamental, sector, and company-performance information as additional filters. It supplies no backtest or performance evidence, and the screening conditions alone do not define trade execution, exits, or risk management.

Key ideas

• The screen combines amplitude above 1, positive MACD conditions, and a 9:25 a.m. gain below 6%.
• The post treats amplitude as a volatility measure and the opening cap as protection against chasing sharp gains.
• The example MACD crossover formula is not necessarily equivalent to a rule requiring MACD to remain above zero.
• The opening-gain threshold may exclude candidates, and speculative activity can distort signals.
• No backtest or performance evidence is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.